At the End of the 1970s,the Inflation Rate in Canada

Multiple Choice

At the end of the 1970s,the inflation rate in Canada had exceeded 10%.This high inflation was due mainly to

A) external pressures on the Canadian dollar.
B) steadily decreasing factor prices.
C) steadily decreasing factor prices and a contractionary monetary policy.
D) a substantial negative supply shock that was partly validated by monetary policy.
E) the extremely high wage increases being won by strong labour unions.